14:11Dec 02, 2021MT Newswires

BMO Notes Differences in Canada, U.S., Australia GDPs Post COVID-19

Bank of Montreal () said that while the broad strokes of how economies had fared during the pandemic had been roughly similar among major advanced economies, there certainly were some key differences.

The United States gross domestic product (GDP) had experienced the closest thing to a "V-shaped" recovery of them all, and output stood at 1.4% above pre-pandemic levels by Q3 2021, noted the bank. Given that the U.S. economy 'normally' grew by around 2% per year, output was as such still a bit more than 2 ppts shy of fully returning to full capacity.

Canada's GDP had mostly followed the U.S. pattern, but with a deeper drop in the early stages of the pandemic, and then a stutter step during third-wave restrictions in Q2 of this year, pointed out BMO. Even with the solid Q3 bounce reported earlier

this week, the output was still 1.4% below its pre-pandemic high.

Based on monthly data, the estimate for October would leave it 0.6% below the February 2020 peak. This suggested that Canada was still about 3.5%-to-4.5% below trend levels of GDP, according to the bank.

Finally, there was Australia, which had had a very different experience. Its initial shutdown was much less severe and the economy snapped back quickly, added BMO. However, renewed lockdowns caused a true double-dip. GDP was now

0.2% below pre-pandemic highs.